4 ms·

What is a currency?

• losteric 9y ago
  A universally recognized asset for exchanging goods and services within a nation. For example, everything for sale in America can be purchased with dollars. That is a key distinction - currencies have strength because they are nationally recognized. If every nation banned trading Australian dollars, they would still hold value in Australia... and there are millions of people working to ensure AUD continues to hold value and confidence outside of Australia. If every nation banned trading bitcoin, they would be worthless... in fact, they would be worthless if only a couple key nations banned the coins.
  • rmwaite 9y ago
    Let's do a thought experiment. What do you think would have happened if the US government had decided against the financial bailouts in 2008? Do you think the value of the USD would have a) increased or b) decreased. Bonus points if you can tell me why this is relevant to your points.